The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 
The Conference Board Innovation α Index
powered by M-CAM
Quarterly Report

Coming Soon



Innovation α United States Index

The Innovation α United States Index powered by M•CAM International uses a quantitative, rule-based methodology to measure the performance of top 100 U.S. companies in innovation ability. The universe of the index are equities of companies similar to those in the Russell 1000, including the 1000 U.S. companies with the largest market capitalization.

M•CAM, the index owner, measures the innovation ability of companies by analyzing their powers in the control and deployment of intellectual property (IP), including patents, trademarks, and copyrights, etc. Since 1998, M•CAM has aggregated and maintained the world's largest organized repository of state-granted IP from over 160 countries representing, in some instances, over 200 years of historical data. Using internationally recognized unstructured text linguistic genomic algorithms developed by M•CAM founder Dr. David E. Martin, the quality of these rights is measured and associated with business transactions reported in financial statements, contracts, bid proposals, trade records, and other publicly available (but hard to find) data. This analysis provides an absolute qualitative and quantitative measure of each individual company's innovation and management thereof. It also provides a relative score of how one company's performance is likely to compare with others with whom it cooperates or competes.

The index is rebalanced quarterly on the first trading day of January, April, July, and October. The index is also reconstituted annually in the first trading day of January, using the above methodology. During the reconstitution, up to ten percent (10%) of the index components may be replaced.

The Index begins with 100 of the best Russell 1000 performers with respect to their control and deployment of IP. These 100 companies are known as the "sentinel companies" and each has its own peer group of companies with similar innovation ability. The companies in each of the 100 sentinel companies' peer groups are ranked against their respective sentinel company on a quarterly basis. A positive ranking score indicates that a peer group company is expected to outperform its sentinel company for the following quarter; a similar argument follows for negative ranking scores. The ranking scores are generated by a combination of machine learning applications and time series input features optimized by M•CAM. Based on the editorial guidelines set by the index's initial publisher CNBC, at least 90 percent of the index components must be finally selected from the Russell 1000 selection of companies. However, in the instance when a best-in-peer-group international or small to mid-cap company consistently outperforms the Russell 1000 sentinels, in those instances, up to 10 percent of the index may come from a mix of international companies that trade in the United States.

The ten highest rankings within unique peer groups then replace their respective sentinel companies in the portfolio on an annual basis. The index is limited to ten replacements, or 10% of the portfolio positions, to reduce the frequency with which positions change within this index every year. Although the index only changes its portfolio annually, the position weightings are rebalanced quarterly. This index seeks to overweight positions that are expected to outperform their respective sentinel companies. The companies that outperform their sentinel companies more times will be assigned a higher weight than those that outperform fewer times.

The index was developed in 2015 and had been published by CNBC as the "CNBC IQ 100 Index" from October 2016 to September 2018. Additional information on the index, including its performance, is available on the index website at www.m-cam.com/innovationalphaindex/.



Innovation α Global Index

Innovation α Global Index powered by M•CAM International uses a quantitative, rule-based methodology to measure the performance of the top 120 global companies in innovation ability. The universe of the index is similar to the MSCI World Index, including companies from the U.S. Europe, Japan, and etc.

M•CAM, the index owner, measures the innovation ability of companies by analyzing their powers in the control and deployment of intellectual property (IP), including patents, trademarks, and copyrights, etc. Since 1998, M•CAM has aggregated and maintained the world's largest organized repository of state-granted IP from over 160 countries representing, in some instances, over 200 years of historical data. Using internationally recognized unstructured text linguistic genomic algorithms developed by M•CAM founder Dr. David E. Martin, the quality of these rights is measured and associated with business transactions reported in financial statements, contracts, bid proposals, trade records, and other publicly available (but hard to find) data. This analysis provides an absolute qualitative and quantitative measure of each individual company's innovation and management thereof. It also provides a relative score of how one company's performance is likely to compare with others with whom it cooperates or competes.

The index is rebalanced quarterly on the first trading day of January, April, July, and October. The index also reconstituted annually in the first trading day of January, using the above methodology.

The Index begins with 120 of the best MSCI World Index performers with respect to their control and deployment of IP. These 120 companies are known as the "sentinel companies" and each has its own peer group of companies with similar innovation ability. The companies in each of the 120 sentinel companies' peer groups are ranked against their respective sentinel company on a quarterly basis. A positive ranking score indicates that a peer group company is expected to outperform its sentinel company for the following quarter; a similar argument follows for negative ranking scores. The ranking scores are generated by a combination of machine learning applications and time series input features optimized by M•CAM. The twelve highest rankings within unique peer groups then replace their respective sentinel companies in the portfolio on an annual basis. The index is limited to twelve replacements, or 10% of the portfolio positions, to reduce the frequency with which positions change within this index every year. Although the index only changes its portfolio annually, the position weightings are rebalanced quarterly. This index seeks to overweight positions that are expected to outperform their respective sentinel companies. The companies that outperform their sentinel companies more times will be assigned a higher weight than those that outperform fewer times. In addition, for each rebalancing and reconstitution, there is a total weight constraint for each geographical market location (U.S., U.K., Japan, etc.) based on the typical MSCI World Index distribution. The total weight constraint is 60% for U.S. companies, 8% for U.K. companies, 10% for German and French companies, 10% for Japan companies, and 12% for companies from all other countries.

The index was developed in 2016

The Conference Board®, M•CAM®, Innovation α®, and all associated marks and brands are subject to trademark protection

Professional Contacts at The Conference Board:

Indicator Program: indicators@conference-board.org

Media Contacts:

Carol Courter:
1 212 339 0232
carol.courter@conference-board.org

Joseph DiBlasi:
1 781 308 7935
joseph.diblasi@conference-board.org

All data contained herein are protected by United States and international copyright laws. The data displayed are provided for informational purposes only and may only be accessed, reviewed, and/or used in with the permission accordance of The Conference Board consistent with a subscriber or license agreement and/or The Conference Board’s Terms of Use. Except as expressly permitted by The Conference Board or applicable law, the data and analysis contained herein may not be used, redistributed, republished, or reposted by any means.